Can you remove existing roof deck from rental property​?

Last updated: January 2, 2025

Comprehensive Guide to Managing Rooftop Decks in Rental Properties

Rooftop decks can be a defining feature for rental properties, offering tenants unique outdoor spaces and property owners a competitive edge in urban markets. However, they also come with challenges related to maintenance, liability, and long-term property value. This guide covers key considerations for managing rooftop decks, from removal and maintenance to liability management and market appeal.

Can You Remove a Rooftop Deck from a Rental Property?

Yes, removing a rooftop deck is possible, but it requires a strategic approach to avoid compromising the property’s structural integrity and value. Removal also requires a careful review of your current lease agreement and clear, proactive communication with tenants.

When contemplating removal of your rental property's rooftop deck, key factors to consider include:

1. Structural Integrity
   • Assess the integration of the deck with the roof. Deck removal often exposes or damages the underlying roof, necessitating thorough inspections.
   • Plan for waterproofing and insulation restoration to prevent future leaks.
2. Building Codes and Legal Compliance
   • Check local building codes and zoning regulations. Many municipalities require permits for both deck removal and subsequent roof repairs.
   • If the property is governed by a homeowner association (HOA), ensure compliance with their regulations.
3. Financial Considerations
   • Budget for demolition, roof repair, and potential waste disposal costs. Deck removal is often more expensive than anticipated.
   • Consider whether removing the deck aligns with market demand in your area, as rooftop decks can significantly boost rental value in urban settings.
4. Tenant Agreements and Market Strategy
   • Review existing lease agreements. Removing a deck could reduce amenities and lead to tenant dissatisfaction or even legal disputes.
   • Evaluate whether the removal aligns with the preferences of your target tenant demographic.

Factors to Weigh Before Removing a Deck

Removing a rooftop deck is not just about the physical labor; it impacts multiple facets of your property’s function and appeal. Before making the decision, ask yourself the following:

• How does the deck contribute to the property’s marketability?
• Are there alternative ways to repurpose the rooftop space after removal?
• Can you mitigate potential tenant backlash by offering other upgrades or incentives?
• Does your long-term investment strategy prioritize simplicity and cost-cutting over amenities?

In urban areas, rooftop decks often function as a “cherry on top,” attracting tenants willing to pay premium rents. However, in suburban markets or areas with harsher climates, their appeal may be less impactful.

Real-Life Example: A Case in Urban vs. Suburban Preferences

Consider two rental properties: one in downtown Chicago, IL and another in a suburban neighborhood in Austin, TX. The urban property’s rooftop deck becomes a top-selling point, enabling the landlord to charge an additional $300 per month. Conversely, in suburban Texas, tenants prioritize backyards over rooftop decks, and the feature adds little value to rental income.

Common Mistakes to Avoid During Deck Removal

1. Ignoring Structural Assessments
   Skipping a professional inspection can result in compromised roof integrity or hidden damages. Structural assessments ensure the roof’s load-bearing capacity and waterproofing remain intact.
2. Neglecting Permits and Regulations
   Proceeding without permits can lead to fines and complications during property resale or refinancing. Furthermore, non-compliance may invalidate your insurance coverage in case of roof-related claims.
3. Underestimating Costs
   Failing to account for labor, materials, and unexpected repairs can strain budgets. Disposal costs for old decking materials and timeline overruns should also be anticipated.
4. Poor Timing
   Attempting removal during adverse weather or tenant occupancy can delay work and create tenant dissatisfaction. Prioritize tenant turnover periods and fair-weather months for such projects.
5. Overlooking Waterproofing
   A failure to properly seal the roof post-removal can lead to leaks and extensive water damage, undermining the property’s structural integrity and incurring avoidable expenses.

Expanded Insight: Overlooking Futureproofing

When removing a deck, consider installing futureproofing elements such as reinforced membranes or modular rooftop options. This can make the property more adaptable for future enhancements.

Pros and Cons of Rooftop Decks in Rental Properties

Best Practices for Maintaining and Enhancing Rooftop Decks

1. Material Selection
   • Wood: Offers classic aesthetics but requires regular sealing and staining to prevent rot and warping.
   • Composite: Low-maintenance and durable but more expensive upfront. Composite materials are resistant to pests, moisture, and fading, making them a long-term investment.
   • Aluminum/Steel: Extremely durable, ideal for modern designs but may lack the warmth of wood. These materials work well in regions prone to extreme weather conditions.
2. Weatherproofing
   • Use high-quality weather-resistant coatings to protect against UV rays, rain, and temperature fluctuations.
   • Ensure proper drainage systems are in place to prevent water pooling and damage. Regularly inspect drainage systems to avoid blockages caused by debris.
3. Safety Measures
   • Install robust railings and non-slip surfaces. Railings should meet local building code specifications, including height and strength requirements.
   • Provide adequate lighting for nighttime use. Solar-powered or motion-activated lighting can be cost-effective and energy-efficient.
   • Regularly inspect for loose boards, cracks, and rust to prevent accidents and maintain tenant satisfaction.
4. Routine Maintenance
   • Schedule biannual inspections to catch issues early. Maintenance schedules should include seasonal cleanings, waterproofing touch-ups, and thorough structural evaluations.
   • Address minor repairs promptly to avoid larger, costlier problems. Document all maintenance activities to demonstrate compliance with safety standards.

Liability Management for Rooftop Decks

1. Insurance Coverage
   • Ensure landlord insurance policies include specific provisions for rooftop decks, covering injuries and property damage.
   • Consider umbrella insurance for additional liability protection, particularly for multi-unit properties with shared rooftop amenities.
2. Tenant Agreements
   • Specify deck usage guidelines and responsibilities, such as reporting damages or adhering to weight limits.
   • Include clauses outlining liability waivers and maintenance expectations to reduce potential disputes.
3. Safety Compliance
   • Adhere to local building codes, including specifications for railing height, load capacity, and emergency access. Regular updates to safety standards should be incorporated into routine maintenance.
   • Maintain documentation of inspections and repairs to demonstrate diligence. Regular audits can help identify areas for improvement.

Roof Repair Best Practices Post-Deck Removal

1. Assessment and Planning
   • Conduct a comprehensive roof inspection to identify leaks, weak points, or compromised materials. Leaks are a common issue post-removal and must be addressed immediately.
   • Develop a repair strategy that includes waterproofing and drainage enhancements. Consult roofing experts to ensure the plan aligns with local climate conditions.
2. Repair and Restoration
   • Remove all attachment points and repair any roof penetrations. Old fasteners and brackets should be replaced or sealed to maintain roof integrity.
   • Install new waterproofing membranes and flashing to protect against water intrusion. Modern materials such as thermoplastic polyolefin (TPO) can provide long-lasting protection.
   • Ensure proper roof slope and drainage to prevent water pooling. Poor drainage is one of the leading causes of roof deterioration.
3. Quality Control
   • Conduct water tests to verify repairs. This ensures that the roof is fully sealed and functional.
   • Maintain documentation of all work performed, including contractor warranties. Such records are invaluable during property sales or tenant disputes.

Do DSCR Loan Guidelines Allow Rooftop Decks?

Yes, DSCR loan guidelines allow rooftop decks. While there are no DSCR loan programs that prohibit rooftop decks, rooftop decks are commonly poorly maintained and may present safety hazards which can be flagged in your appraisal report (i.e. wood rot, loose railings).

Depending on the severity of deferred maintenance of the rooftop deck, your DSCR lender may require the deferred maintenance to be "cured" prior to funding your loan. If this is a purchase transaction, this means the seller will need to agree to repair the rooftop deck or allow you to repair the rooftop deck prior to closing. If this is a refinance transaction, you may need to repair the damaged rooftop deck prior to closing.

Some DSCR lenders will agree to proceed with funding and holdback a portion of your loan amount in escrow until evidence of cure is provided post-closing. This is not ideal and generally carries higher interest rate because the DSCR lender will not be able to sell your DSCR loan to institutional credit investors on the secondary market until the deferred maintenance is cured, thereby subjecting the lender to interest rate risk.

Checklist for Rooftop Decks at Rental Properties

Conclusion: Key Takeaways on Rooftop Deck Removal at Rental Property

Managing rooftop decks in rental properties requires balancing their aesthetic and financial benefits with maintenance and liability considerations. Whether you choose to retain, enhance, or remove a rooftop deck, careful planning and adherence to best practices are essential. Consulting with professionals such as structural engineers, roofing specialists, and legal advisors can help you make informed decisions that align with your investment strategy and tenant needs.

By prioritizing safety, compliance, and quality, you can ensure that rooftop decks remain a valuable asset in your rental property portfolio. With proper management, these spaces can serve as a cornerstone of tenant satisfaction and long-term profitability.

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